The start of 2025 brought a mixed bag for blockchain gaming. While deal activity picked up, funding totals took a sharp downturn.
According to DappRadar’s Q1 2025 report, total investment in blockchain gaming fell to $91 million — down 71% from Q4 2024 and 68% year-over-year.
Analyst Sara Gherghelas said the numbers underline the impact of broader market uncertainty and limited venture appetite.
“Unless the funding climate stabilizes, startups may face increased difficulties in 2025,” she warned.
More Deals, Smaller Checks as Investor Strategy Shifts
Despite the capital slowdown, the number of funding rounds increased by 35%, suggesting that investors are spreading risk more widely.
Gherghelas said most capital went into core infrastructure projects rather than front-end games — a signal that long-term bets on foundational technologies are still intact.
Key deals included South Korea’s MARBLEX, which partnered with Immutable to back a $20 million Semi-Publishing fund, and The Game Company, which raised $10 million to create a device-agnostic, blockchain-integrated cloud gaming platform.
Structural Challenges and Surging User Growth Collide
The Web3 gaming ecosystem still faces internal friction. The Arbitrum DAO recently pulled support from its gaming fund, citing slow progress and governance issues.
ZKsync also shuttered its incentive program, blaming tough market conditions.
Yet, January delivered a notable surge in usage. Blockchain games hit a record 7 million daily users — a 386% increase year-over-year.
OpBNB and Matchain topped the charts, while Polygon doubled its gaming engagement compared to December 2024.
Telegram has become a key channel for launching blockchain games, accounting for over one-fifth of new releases last year, according to Game7’s annual report.
